Overseers for Atlantic City have announced deal with Borgata

Overseers for Atlantic City have announced deal with Borgata

February 16, 2017 8:49 AM
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New Jersey overseers for Atlantic City have announced a deal with Borgata Hotel Casino & Spa that pays the casino $72 million. That’s less than half of what the city owed the casino/resort.

The settlement stems from the city’s massive tax-appeal debt to Borgata. The deal saves the city tens of millions of dollars and resolves one of the largest issues facing the cash-strapped municipality.

The city owed Borgata $165 million in property-tax refunds, according to officials managing the state takeover of the city. In a move that heightened the city’s financial difficulties, Borgata was withholding property-tax payments in 2016 to offset some of the refunds

Borgata will forgo pending tax appeals for 2013 to 2015 and will make its quarterly payments in lieu of property taxes this year, according to a statement from the Department of Community Affairs.